1. RGDP would go up by 40 billion because you multiply the amount injected by the MPC to find the total value added to RGDP.
2. When disposable income is stable, consumption can change based on expectations for the future and wealth as a whole. When people expect that there will be an increase in their disposable income at some point, they will consume more. Also, people's assets, such as real estate or stocks and bonds, can inform changes in their consumption.
RGDP would go up by $50 billion times 5 (multiplier). Expectations and wealth are correct because they are nonincome determinants of consumption.
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